Supermarket wars just getting started is great news for your pocket

A bold move by a major brand could see the 2016 supermarket battle not even coming close to what will happen in 2017!
Business

2016 was the year that the supermarket battle truly got heated.  Coles and Woolworths fought it out in multi-million dollar media blitz while Aldi climbed the ladder with store expansion and lower prices.

It seems that 2017 is only going to get hotter between the brands as Wesfarmers, the parent company of Coles, is trying to liquidate some assets to assist in the supermarket battles.  Those assets include the other retail store Officeworks.

It has put the popular store up for sale after telling stockholders during their half-year results that the chain “has successfully executed a turnaround plan, more than doubling its earnings and improving its return on capital”.  This would put a very attractive ‘for sale’ sign on the brand and fetch a “battle chest” of funds they could dedicate to the supermarket battle.

Wesfarmers boss John Durkan told the press that Coles would “never give up” and be “competitive forever”.   The press will be to lower prices in their Coles stores so that customers return to make good on their bold strategy.

The result means that Woolworths and Aldo in a bid to stay competitive will be offering more sales ahead of this announcement to try to lock in loyalty.  Look for Coles to start ramping up its offerings in the next few months.

What would Coles need to do to get you back into their stores?  Are you happy to shop at whoever offers the best deal or do you have a brand loyalty?

  1. Ever since we moved from a small rural town to a larger country centre 17 years ago, we have shopped at Coles. The town also has Woolies. IGA and Aldi as the major supermarkets. Over all pricing between these stores is much the same. IGA is closest to our home but an extra couple of minutes to Coles has not changed our shopping preference as the Coles supermarket has become our favourite and we have no intention of changing. We have never bothered to chase bargains or specials at other stores as we have found that if we “shop smart” our weekly spend remains about the same.

    • Owen Gustafson  

      Even though the choice is yours and you have made that choice as to where you want to shop, I find it strange that you would pick the most expensive supermarket as your favourite, I guess we are all different !

  2. Maureen  

    My local IGA offer Senior Discount on a particular day in the week.
    It would be nice to see this in Coles And Woolworths or a Special Senior Discount day once a month.

  3. Sue B  

    Won’t buy @ my local Woolies – they are in a mall & have moved their entrance from near the entrance doors to the mall to further into the mall. They have nothing that I would need to purchase, as they don’t stock it. There’s another Woolies in my vicinity & I would rather go there to get those rare purchases I want to make from Woolies. They do stock the items.

    Aldi – not too fussed on the taste of some of their staples. My ex now shops @ Aldi and their 2 litre milk is $1.99 compared to Coles/Woolies $2. What’s the big deal? The only thing I purchase @ Aldi is their dishwashing liquid.

    There’s a Discount Grocery Warehouse also in our area (old Shepparton Cannery). I sometimes go there to get my baked beans & spaghetti.

    Overall I prefer Coles.

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